Combine sugar and 3/4 cup water in a saucepan. Bring the mixture to a boil, stirring until sugar is dissolved. Reduce heat and simmer for 15 minutes. Stir occasionally.
Mix gelatin in remaining 1/2 cup water to soften. Allow to sit for 10 minutes.
Stir softened gelatin into sugar mixture. Continue simmering for 10 minutes. Stir occasionally.
Remove from heat. Stir in 2 tsp cinnamon extract and red food coloring (optional). Mixture will be thick and sticky.
Line an 8x8 square pan with 2 sheets of plastic wrap, alternating direction, so extra wrap hangs over all pan edges.
Pour candy mixture into lined pan. Allow to set for 12 hours in refrigerator.
Once candy is set, cut into 1 inch squares with a knife, or cut with small cookie cutter. The mixture will be very sticky and may be difficult to cut. For easier cutting, dip knife or cutter in warm water. Plastic wrap can be peeled from the bottom.
Put granulated or powdered sugar in a small bowl. Toss candy in bowl, one piece at a time, coating entire piece in sugar. Store at room temperature.
Challenger's Statement:
When I started to think of Valentine's Candy, the first thing that came to my mind was those little red spicy cinnamon hearts. The next thing I thought of were red, heart shaped gumdrops. My FA kid is always asking to try gumdrops, but I have never found any without a peanut warning. I knew I had found my challenge. I came up with a recipe that doesn't require a candy thermometer or an understanding of what 'hard ball' and 'soft ball' mean. Enjoy!